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Previously on "AccountingWeb any answers - use of home"

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  • ladymuck
    replied
    Originally posted by craigy1874 View Post
    That is a great way to decide on your accounts figures...not!

    While we are at it, why not increase accountancy fees in the accounts, or insurance costs, as HMRC never question these costs for my clients either!

    Seriously, that is some pretty bad advice you have been given there. How would you justify the increase to HMRC if they asked? Would you just quote the above line from your accountant?
    I have to say, every year when I saw he'd journalled that through, I would just reverse it as I thought it was an error. Shame I'm not personally VAT registered as an extra £100 off my VAT bill isn't be sniffed at

    Leave a comment:


  • PhiltheGreek
    replied
    Originally posted by WordIsBond View Post
    Wow. So one of the little WIBs still lives at home and works for me. Does that mean we can pull off £12 / week, since he's giving up part of HIS home, too? I'll slash the little tyke's salary by £4 / week and pay him rent!

    Or does it have to be a spouse? Polygamy, here I come! Do Mormons accept you into their religion if you are only doing it to save tax?
    I once saw a sign that said 'Jesus saves'. Maybe the word 'tax' had fallen off the end? In which case fill yer boots. I'll look forwards to the polygamist divorce thread.

    Leave a comment:


  • TheCyclingProgrammer
    replied
    Originally posted by WordIsBond View Post
    Wow. So one of the little WIBs still lives at home and works for me. Does that mean we can pull off £12 / week, since he's giving up part of HIS home, too? I'll slash the little tyke's salary by £4 / week and pay him rent!

    Or does it have to be a spouse? Polygamy, here I come! Do Mormons accept you into their religion if you are only doing it to save tax?
    If they work for you and they work from home, you can pay them £4/week.

    Leave a comment:


  • WordIsBond
    replied
    Wow. So one of the little WIBs still lives at home and works for me. Does that mean we can pull off £12 / week, since he's giving up part of HIS home, too? I'll slash the little tyke's salary by £4 / week and pay him rent!

    Or does it have to be a spouse? Polygamy, here I come! Do Mormons accept you into their religion if you are only doing it to save tax?

    Leave a comment:


  • northernladuk
    replied
    Originally posted by PhiltheGreek View Post
    Like my Mrs being exempt from tax you mean?
    Well it's all her money anyway isn't it?

    Leave a comment:


  • PhiltheGreek
    replied
    Originally posted by northernladuk View Post
    I don't think it's ever been mentioned on here when discussing the benefits of using the wife to mitigate tax.
    Like my Mrs being exempt from tax you mean?

    Leave a comment:


  • northernladuk
    replied
    Originally posted by SuperLooper View Post
    I was surprised by it too, but my accountant (who is very well respected on this forum) assured me it was perfectly normal and acceptable.

    It is factually correct to state that each of my company's directors is giving up a room in his/her house to the company. It just happens to be the same room in the same house for both people.
    Yeah I get that. Just odd I don't think it's ever been mentioned on here when discussing the benefits of using the wife to mitigate tax. One to add to the list

    Leave a comment:


  • TheCyclingProgrammer
    replied
    Originally posted by northernladuk View Post
    Using the missus to up the rent. That's a new one.
    My accountant also advises my wife (who is a director and does some admin work) claims the £4/week.

    Leave a comment:


  • SuperLooper
    replied
    I was surprised by it too, but my accountant (who is very well respected on this forum) assured me it was perfectly normal and acceptable.

    It is factually correct to state that each of my company's directors is giving up a room in his/her house to the company. It just happens to be the same room in the same house for both people.

    Leave a comment:


  • northernladuk
    replied
    Originally posted by SuperLooper View Post
    I do £4 per week each for me and the Mrs (both directors and shareholders), £416 per annum total.
    Using the missus to up the rent. That's a new one.
    I hope BT isn't claiming 4 quid a week for all their shareholders.

    Leave a comment:


  • SuperLooper
    replied
    I do £4 per week each for me and the Mrs (both directors and shareholders), £416 per annum total.

    Leave a comment:


  • craigy1874
    replied
    Originally posted by ladymuck View Post
    My accountant takes the £4 a week I journal through the company and bumps it up a bit. When I asked him why, he said:

    "Although the official HMRC manuals state that use of home can be £4 PW in reality they never question a charge of £500-600"

    That's an annual charge, not £500-600 PW
    That is a great way to decide on your accounts figures...not!

    While we are at it, why not increase accountancy fees in the accounts, or insurance costs, as HMRC never question these costs for my clients either!

    Seriously, that is some pretty bad advice you have been given there. How would you justify the increase to HMRC if they asked? Would you just quote the above line from your accountant?

    Leave a comment:


  • ladymuck
    replied
    My accountant takes the £4 a week I journal through the company and bumps it up a bit. When I asked him why, he said:

    "Although the official HMRC manuals state that use of home can be £4 PW in reality they never question a charge of £500-600"

    That's an annual charge, not £500-600 PW

    Leave a comment:


  • WordIsBond
    replied
    "Mr and Mrs WIB shall provide to WIB Ltd, for compensation received, access to portions of their home to use as office space. Access shall be on the following terms:
    A. Study. Up to 80 hours a week.
    B. Family Room. Up to 50 hours a week.

    The above shall not preclude the use of those rooms by Mr or Mrs WIB for personal use at other times, nor shall it preclude personal use by one of them concurrently with business use by someone else."

    Obviously my case is different from most because some people work evenings and weekends so the study is often hopping, and when everyone is here and brainstorming a project we all move into the family room, sometimes for more than a day. Most of you guys won't be doing that kind of thing.

    But specifying a max number of hours and having language specifically endorsing personal use should protect against the capital gains concern, I'd think.

    Leave a comment:


  • TheCyclingProgrammer
    replied
    Originally posted by Jessica@WhiteFieldTax View Post
    Generally, so long as the space is shared - it has some domestic use - its disregarded for Business Rates and CGT.

    You do, of course, do your household accounts and admin in your garden office, TCP?
    I certainly do, although I don’t rent the space to MyCo either.

    I actually emailed the VOA before it was built and they confirmed that rates wouldn’t apply anyway as it was still considered largely domestic in nature. I suspect this is because what I do is broadly considered clerical work.

    Leave a comment:

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